By Andrea Heisinger
New York, Aug. 20 - American International Group, Inc. sold $250 million of 2.375% three-year subordinated notes on Monday to yield Treasuries plus 200 basis points, an informed source said.
The deal was priced at the tight end of guidance in the low 200 bps area, the source said.
The notes (Baa2/BBB+/) were priced at 99.908 to yield 2.407%. There is a make-whole call option at 30 bps over Treasuries.
Citigroup Global Markets Inc. ran the books.
Co-managers were BNP Paribas Securities Corp. and RBC Capital Markets LLC.
Junior co-managers were CastleOak Securities LP, Drexel Hamilton LLC, Lebenthal & Co. LLC, Samuel A. Ramirez & Co. Inc. and Williams Capital Group LP.
Proceeds will be used for general corporate purposes.
AIG last tapped the U.S. bond market with a reopening of 4.875% notes due 2022 on June 26 to add $750 million.
The insurance company is based in New York City.
| Issuer: | American International Group, Inc.
|
| Issue: | Subordinated notes
|
| Amount: | $250 million
|
| Maturity: | Aug. 24, 2015
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Co-managers: | BNP Paribas Securities Corp., RBC Capital Markets LLC
|
| Junior co-managers: | CastleOak Securities LP, Drexel Hamilton LLC, Lebenthal & Co. LLC, Samuel A. Ramirez & Co. Inc., Williams Capital Group LP
|
| Coupon: | 2.375%
|
| Price: | 99.908
|
| Yield: | 2.407%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Trade date: | Aug. 20
|
| Settlement date: | Aug. 23
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| Price talk: | Low 200 bps area (whispered)
|
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